Zen And The Art of NRJ

Michael Hedges September 14, 2006

NRJ Group launches more internet radio channels. Yes, one of them is Chérie FM Zen.
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“We will launch more Web radios,” said NRJ Group CEO (and Zen master) Marc Pallain as the company rolled out internet channels as thematic extensions of its existing brands. Internet radio has taken years to catch on. NRJ’s announcement arrived just as French audience measurement service Médiamétrie released new figures that show, yes indeed, people are using the Web for radio.

The new channels, with more to come says M. Pallain, are a comedy channel 100% Coluche offering the jokes and gags of new talent under the Rire & Chansons brand. And, then, you can hear Chérie FM Zen, described by program director Mike Wagner as “soft and jazzy.” 

Earlier this year the Nostalgie brand was complimented with three internet channels; Nostalgie Traditional 80, British Nostalgie & American Legends and Nostalgie Legend Rock'n'roll. These were followed in early summer with NRJ Guest and NRJ Extradance.

French broadcasters have little option but to explore internet radio. Digital radio, DAB and the like, remains mired in prolonged bureaucratic agony. Clearly French radio listeners are not waiting.

Broadcasters will meditate deeply on Médiamétrie’s new cross-media report, released September 11; a study of cross-media usage, focusing on young people. Eight out of ten (83.1%)18 to 24 year olds access some form of multi-media during the average week. Just under one quarter of all multimedia users listen to radio via the internet. That percentage jumps to nearly one-third of 18 to 24 year olds.

NRJ is not alone in the quest for multimedia audience. SkyRock’s successful SkyBlog website has eclipsed the radio channel.

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No Digital Benefit Yet For NRJ Group - April 3, 2007

NRJ Group owns and operates arguably the best-known radio brands in Europe. NRJ, Nostalgie and Chérie FM reach millions in France and several other countries. Yet the company, understanding as well as any the need to embrace new, albeit digital platforms, just can’t make the new services profitable. As usual, bankers and stock traders looking for instant and huge profits are punishing.

NRJ Group continues to pay the price for correct decisions that pay-off slowly. It’s something bankers and stock traders just can't deal with. The company released 2006 financial results, losing a shade more than 4%.

Total sales rose 15% over 2005 for the entire company. Reality is that radio – the engine powering NRJ Group – suffers with the entire radio sector. Total radio revenue is not expanding in France. Big radio brands – like NRJ and Nostalgie – take the suffering first.

NRJ Group owns Towercast, a transmission provider. More recent investments are in mobile phones (virtual provider NRJ Mobile) and TV, with the intention of leveraging the NRJ brand. The pay-off hasn’t arrived.

The company says 2008 or 2009 will be different, a corner turned. Brokers BNP Parabis groaned.

NRJ Q3 Financial - October 27, 2006

NRJ Group released Q3 financial results citing growth in non-broadcast activities. Gross revenue for the first three quarters grew just under 20% to €79 million. Non-broadcast revenue, led by Le Roi Soleil, grew 35% quarter to quarter.

Broadcast revenue for the quarter dropped 10% under the continuing struggle in the German market. In July NRJ reached a sales agreement with AS&S.